The Research On Optimization Of Joyoung Equity Incentive

In 1952,the equity incentive was published firstly in the Feazell company of the United States.The equity incentive,as the meaning itself indicates,is to give some of the economic rights of the enterprise to the executives and excellent employees in the form of equity,and then encourages them to work for a long time and conscientiously.The practice has proved that the equity incentive system is an effective measure that can motivate the employees sustainably,so a large number of enterprises in foreign countries use this system for a long time.After applied long period,this system has been improving in foreign countries.In China,because of the maturity of capital market environment and conditions in recent years,equity incentive system has been adopted by many enterprises.However,because some companies do not combine the actual situation of the enterprise itself,they only copy the incentive scheme of the successful enterprise,which results in the failure of the plan implementation.Therefore,we must seek truth from facts and combine the advantages and characteristics of enterprises to design a matching equity incentive plan,so as to maximize the effectiveness of the plan.Joyoung Limited by Share Ltd,as the leading enterprise in the small household appliance industry,has been trying to explore the most suitable incentive system for enterprise development since it was listed in 2008.So far,two equity incentive schemes have been announced.The first equity incentive plan announced in 2011 was not implemented,and the second equity incentive plan announced in 2014 was successfully implemented.This paper uses theoretical research,case analysis,event research and other research methods,and uses a variety of incentive theories to analyze the core of the knowledge of equity incentive.At the same time,it combines the case of Joyoung Limited by Share Ltd to analyze the equity incentive scheme designed by Joyoung Limited by Share Ltd and explore the failure of the two equity incentive scheme.And the reasons for the success are that there are some problems in the Joyoung stock equity incentive scheme,such as low award price,imperfect performance appraisal system,low efficiency of enterprise investment behavior and narrow coverage of motivating objects.In view of these problems,the author first puts forward the principle of the design of the equity incentive scheme,and then determines the objective of the optimization,and then puts forward the optimization suggestions that should be appropriately improved,the establishment of a comprehensive performance index system,the proper extension of the time limit for the right and the reasonable determination of the target of incentive,and the last of the Joyoung.It is hoped that the equity incentive scheme of Joyoung shares can be further optimized to achieve the best effect in the use of equity incentive system by standardizing the corporate governance structure and strengthening the equity incentive implementation.At the same time,it also provides some suggestions on the optimization of equity incentive programs for other listed companies.